US 10-year yields highest since 2007
Bad news all round (unless you buying).
Almost 40% of US government debt expires in the next four years and will be re-issued at markedly higher rates, 9x higher in some cases.
Money flowing into US bonds for yield.
- This sees less money entering the stock market
- Sees a stronger US$ (check DXY strength, all currncies weaker against US$)
Hits valuations lower as higher rates makes cash worth less in the future, but so far the market has ignored this fact.
- The Top40 closed negative for the year on Tuesday. This after being almost +12% in late January and trading at all-time highs.
Fed and SARB hold rates steady – but very hawkish.
- StatsSA “South African hotels recorded an occupancy rate of 47.3% in July 2023, up from 45.8% in June and 45.5% in May.”. But still below the ±50% pre-pandemic occupancy levels.
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Thursdays are all about hard-core investing and trading with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon shares his views on the state of global economies, individual shares and events moving markets.